NIFTY started the day at 18,600 with a small gap-up of nearly 7 points. It couldn’t sustain that level and fell to 18,530 (filling the gap created yesterday). Then, the index consolidated for nearly three hours and gave a powerful breakout after 3 PM! Nifty shot up nearly 70 points to 18,622, but the weighted average closing of Nifty is at 18,599, up by 5 points or 0.03%.

BANK NIFTY started the day at 44,156 with a gap-up of 55 points. Similar to Nifty, it saw selling pressure initially, which pulled the index down to 44,000 round levels. Then, the index mostly consolidated and finally gave a good rally on the upside to 44,200 zones post 3 PM. Bank Nifty closed at 44,164, up by 62 pts or 0.14%.

Nifty IT (-1.8%) fell heavily, while Nifty Realty (+1.19%) and Nifty Auto (+1.09%) moved up the most. 

Major Asian markets closed mixed. European markets are currently trading in the red.

Today’s Moves

UltraTech Cement (+2.89%) was NIFTY50’s top gainer. The stock hit a 52-week high of Rs 8,120 today on the back of multiple block deals.

Meghmani Finechem (+14%) rallied after the company informed about an investor meeting with Singapore-based Indea Capital Partners.

Mazagon Dock Shipbuilders (+4.1%) has surged over 30% over the past week. Defence stocks have been rising after India and the US agreed on a roadmap for military-industrial cooperation.

TechM (-2.08%) was NIFTY50’s top loser. 

Other IT stocks Persistent Systems (-4.3%), Coforge (-3.8%), Mphasis (-3.6%), INFY (-1.95%), and Wipro (-1.05%) also fell after US-based EPAM cut its CY23 revenue growth outlook for the second time. The cut is based on the slowdown in discretionary spending by US companies, which is a crucial market for Indian IT companies. 

IEX (-3.9%) fell after it reported that the average spot power price fell 30% to Rs 4.74 per unit in May.

Markets Ahead

A proper 3 PM movement after a very long time! The breakout was only of 70 pts, but it was very huge compared to today’s intraday candles and 3 PM movements on previous days. 

• Keep an eye on Reliance in the coming days as it tests 2480-2500 resistance. 
• HDFC Bank is now trading near the 1580-1600 support zone.
• ICICI Bank’s 935 level would give some direction for the stock.
• Axis Bank is testing its previous all-time high (ATH).

In Nifty, two major levels can be considered as supports: 18,450 and 18,530. I am expecting the index to trade within the 18,530-18,670 range till the RBI announces its interest rate decision on Thursday at 10 AM.

A momentum will form in Bank Nifty only if the 44,150-210 resistance zone is broken and support can be expected at the 43,400 -500 zone.

The National Stock Exchange (NSE) has changed the expiry for Bank Nifty Futures and Options (F&O) to Friday instead of Thursday (effective July 7). What do you think of this move? Let us know in the comments section of the marketfeed app.